It’s a story too many South Africans can identify with: a sole breadwinner, three children to raise and an unemployed spouse. This is how Sarah Motuku, Loco Driver at Siphumelele mine and shop-steward for United Association of South Africa (UASA) trade union, found herself with numerous bank loans and ultimately caught up in the trappings of never ending debt.
Sarah explained how with endless garnishee orders from debtors, financial freedom seemed completely out of reach. Life felt hopeless for her until she come across our platinum business’s Financial Wellness Programme.
“When I got a job at Anglo American Platinum in 2007, I thought that was my big break and I would finally be able to provide for my family. Unfortunately the demand on my salary was too high with my children, husband, parents, siblings, nieces and nephews all depending on me for support. It was then that I applied for my first loan and before I knew it I was struggling to keep up with the repayments,” shares Sarah.
“As a mother, providing for your children is one of the most important things. Not being able to do this is demoralising and really affects the family negatively.”
Like Sarah, many South Africans find themselves drowning in debt. The dawn of instant personal loan services available online, in stores and even through mobile services have made it all too easy for everyday people to find themselves entrenched in this hopeless position.
In principle, borrowing cannot be criticised – that is if it is managed responsibly, is mutually beneficial, falls within the bounds of the law and if its obligations are understood. Many South Africans are exploited by unscrupulous lenders and collectors who frequently circumvent the law and/or who exploit employees’ often limited understanding of personal financial management and limited access to recourse.
Our Executive Head, Andile Sangqu, explains, “As a group we’re aware of the devastating effects of indebtedness in South Africa. As one of the country’s major employers, we have a responsibility to help our people free themselves from debt and avoid the snares and consequences of irresponsible lenders altogether.”
“The financial wellness programmes are part of a larger undertaking by the business to address the indebtedness of our employees across the group. We have enlisted a number of service providers, which will make available the appropriate systems, processes and education to enable employees to deal with high levels of indebtedness, and undertake responsible financial planning,“ Andile continues.
“The financial wellness programme is the best thing that has ever happened to me,” exclaims Sarah. “For the first time in my life my salary is all mine, and I’m able to provide for my home, support my parents, siblings and their children yet I still have a surplus to spoil my kids and myself. I feel like I have been given new life and I’m so thankful.”
“After seeing the results for myself, when my colleagues ask me for help as their shop-steward regarding finances, I can comfortably refer them to the programme. I know that if Anglo American can do it for me, they can do it for anyone.”
Since the inception of the programme, Anglo American together with its partners has helped employees save over R3 million, which would otherwise have been consumed by garnishee orders. By removing the administrative burden of managing garnishee orders, the programme ensures that only valid, accurate and affordable deductions are established, putting money back into employee pockets and ultimately their homes.
“My family is happier, I feel more at peace to enjoy my work and life. I’m a new person and it’s all thanks to Anglo American Platinum” concludes Sarah.
To discover our commitment to a transformed industry and nation, download our latest Transformation Report.